News

eCurrency partners Bank of Jamaica for CBDC rollout

Friday 18 November 2022 12:37 CET | News

Digital currency security systems provider eCurrency has entered a long-term partnership with the Bank of Jamaica to support its CBDC rollout.

 

In June 2022, the Jamaican Parliament passed amendments to the Bank of Jamaica Act and became the first country to recognize its CBDC as legal tender. Following a successful CBDC pilot conducted in partnership with eCurrency, the bank has announced the national rollout of its central bank digital currency, JAM-DEX. 

With the launch of JAM-DEX, the Bank of Jamaica aims to increase financial inclusion by allowing consumers to make and receive payments anytime, anywhere and using convenient devices. The partnership with eCurrency involves a solution that comprises several layers of security to prevent counterfeiting while allowing universal interoperability and widespread circulation. 

Bank of Jamaica aims to remain the sole issuer of the CBDC while allowing regulated financial institutions, including commercial banks and payment service providers to distribute the CBDC to the general public.

 

Digital currency security systems provider eCurrency has entered a long-term partnership with the Bank of Jamaica to support its CBDC rollout.

 

CBDC adoption in Jamaica

Following the successful CBDC pilot test in January 2022, the country's prime minister predicted that the majority of the Jamaican population would be quick to adopt the digital currency. Cited by cointelegraph.com, the prime minister stated that more than 70% of Jamaica’s population will use the CBDC within five years. 

The Jamaican government hopes that the national digital currency will help lower transaction costs while allowing unbanked citizens to access more financial services. Cointelegraph reports that internet penetration in Jamaica sits at over 55% and mobile phone usage is at 100%. The government is relying on these technological dynamics to fuel the adoption of its national digital currency. 

The benefits of using CDBC in Jamaica

In June 2021, The Paypers published an interview with the Central Bank of Jamaica and eCurrency on the topic of CBDCs and their main benefits for the country. During the interview, the BoJ talked about the benefits that CBDCs would bring to the local people and businesses. 

For individual consumers, these benefits would include a broadened and more modern payment system that offers a digital alternative to cash, as well as greater financial inclusion as persons who do not currently have regular bank accounts will be able to access CBDC wallets in a way that will be easier and simpler than accessing regular bank accounts. 

The financial system would benefit from increases in systemic efficiency and significant reductions in costs for cash distribution and storage, as well as an increase in the menu items of services available to customers. 

For the BoJ, the implementation of the CBDC could translate to significant cost changes in the long term, and increased efficiency by removing the time and effort it takes to forecast currency needs and order new currency in advance.


More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: CBDC, central bank, digital currency, cryptocurrency
Categories: Banking & Fintech
Companies: Bank of Jamaica, eCurrency
Countries: Jamaica
This article is part of category

Banking & Fintech

Bank of Jamaica

|

eCurrency

|
Discover all the Company news on Bank of Jamaica and other articles related to Bank of Jamaica in The Paypers News, Reports, and insights on the payments and fintech industry: